The Trinidad Guardian Newspaper - Rapheal John-Lallhttp://m.guardian.co.tt/byline-authors/rapheal-john-lall
enMixed views on re-negotiating gas contractshttp://m.guardian.co.tt/business/2018-03-18/mixed-views-re-negotiating-gas-contracts
<div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even"><img typeof="foaf:Image" src="http://m.guardian.co.tt/sites/default/files/default_images/GuardianMedia.jpg" alt="" /></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"><p></p>
<p>Former Energy Minister Kevin Ramnarine has no problem with Government seeking a better deal for gas contracts.</p>
<p>He told the T&amp;T Guardian: “The Train 1 agreement expires in September 2018. I would assume that the Train 1 owners (mainly BP and Shell) would want the commercial life of Train 1 extended or renewed. This of course presents an opportunity for the Government to renegotiate a new Train 1 agreement that gives the country more value from that particular Train. </p>
<p>“When this was raised with me three years ago, our position was that any new Train 1 agreement would be premised on BP finding new natural gas. This has happened with the discoveries of Savannah and Macadamia. </p>
<p>“The ball is in the Government’s court on whether Train 1 will be continued post September 2018.”</p>
<p>At a PNM post general council briefing at Balisier House last week, Energy Minister Franklin Khan said Government had already had preliminary discussions with some gas companies and is open to talking about re-negotiating contracts. </p>
<p>Khan said the Government is not extracting as much economic rent as it could from gas companies. Ramnarine said whatever is re-negotiated must be done in good faith.</p>
<p>“Sanctity of contract is a fundamental pillar of modern commerce and any attempt to renegotiate LNG off take contracts would have to be done via mutual agreement between the contracting parties which happen to be privately owned entities. </p>
<p>“We must also be cognisant that when companies evaluate investment decisions they consider political risk as one of the variables,” he said.</p>
<p>In a statement on its website, the Energy Chamber of T&amp;T urged caution around the renegotiation of contracts. The group said it is reasonable, given the country’s current revenue situation, for Government to want to revisit some contractual arrangements in the sector where there is opportunity to get higher economic rents. </p>
<p>The Chamber said while it recognises the rights of parties to respectfully revisit contracts or regulations when conditions change, Government must protect T&amp;T’s reputation as a country where commercial contracts with international companies are respected.</p>
<p>“In any renegotiations, the Government must be mindful of our well-deserved reputation as a jurisdiction that fully respects commercial contracts. </p>
<p>“We must ensure that this reputation is preserved or even strengthened in this process. In this regard, we were pleased by the relevant statements made during the Prime Minister’s closing remarks which suggest that he is so minded,” the group warned.</p>
</div></div></div>Mon, 19 Mar 2018 01:59:28 +0000Neo142277 at http://m.guardian.co.ttRaphael John-LallConsultant advises: Change retirement age to 65http://m.guardian.co.tt/business-guardian/2018-03-18/consultant-advises-change-retirement-age-65
<div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even"><img typeof="foaf:Image" src="http://m.guardian.co.tt/sites/default/files/field/image/Michael%20Falk.jpg" width="400" height="356" alt="" /></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"><p>The ideological debate remains.</p>
<p>Should there be national health and education systems that would protect the less fortunate in society?</p>
<p>Should governments raise the age of retirement as many countries across the world are grappling with the aging factor?</p>
<p>Should robots play a greater role in the future as there are fewer workers due to societies aging?</p>
<p>Michael Falk, partner, Chapter of Investment Professionals (CFA) and consultant spoke on Monday night at a seminar hosted by CFA T&amp;T at the Courtyard by Marriott hotel, Port-of-Spain.</p>
<p>The American investment consultant discussed retirement, healthcare and education—the subject matter of his latest book, or monograph as he chose to call it.</p>
<p>It is titled “Let’s All Learn How To Fish…To Sustain Long-Term Economic Growth.”</p>
<p>The book’s foreword, written by Laurence B Siegel, director of research at the CFA Institute Research Foundation, said the book should not be treated as a “left-wing nor right-wing treatise” as the author advocates for a social safety net and, at the same time, calls for self reliance and not over dependence on the State.</p>
<p>Falk said the reason for social policies is to provide a safety net.</p>
<p>“It is to protect those of us who fall, to protect those of us who are unable to continue to live our lives at some level. When we think of safety nets we usually think of two parts of the population, the very old and the young.”</p>
<p>At the same time, he said, a safety net should not be an excuse for people to be overly dependent on the State.</p>
<p>“Good policies have both safety nets and trampolines. Those who are able to bounce back from whatever it was that took them down. What we need to do is to alter the incentives so that we can get people out of the nets, but we don’t want to weaken the nets.”</p>
<p>National insurance</p>
<p>Falk said that T&amp;T nationals needs to increase contributions to the National Insurance System if the system is to remain sustainable in the future.</p>
<p>He was responding to a question from the audience on the diminishing ability of the National Insurance Board (NIB) to finance the national insurance system over the next few years.</p>
<p>According to a T&amp;T Guardian report in November 2017, the NIB fund could go broke in the next 12 years because it is out of alignment with no long term sustained initiatives to generate rates of higher return.</p>
<p>The fund now stands at some $25 billion but, to be sustainable it needs to be topped up to some $75 billion so as to ensure efficient payments could be made in the coming years.</p>
<p>“There’s only a few levers that you can pull. There’s a very simple pension equation which is C+I=B. Contributions plus investment performance equals benefits. Contributions will have to go up and benefits will have to go down. That is clear as I can make it. Contributions going up means taxes go up. T&amp;T needs to reduce the benefits and increase the contributions and people need to age to get it,” Falk said.</p>
<p>He also suggested a means testing to decide who needs state support and those who can support themselves after a certain age.</p>
<p>He admitted that he does not know enough about the intricacies about the local NIS scheme to say what should be the ideal contribution and benefit rates.</p>
<p>“If we were to look at T&amp;T nationals over time and different routes, what’s the level of fixed cost exposure to the average T&amp;T national when they retire? We want to immunise that. Because not everyone gets rid of the mortgage, not everyone gets rid of the car payments. They probably need electricity, they probably need food. That’s where to start the dialogue.”</p>
<p>He also spoke about T&amp;T’s falling birth rate.</p>
<p>“T&amp;T fertility is about 1.5 births per female on an average. 2.1 is the alleged replacement rate of birth so what that means is that being under 2.1, you’re shrinking the size of your society. Overtime, T&amp;T’s society is shrinking.”</p>
<p>Touching on the retirement age debate that is going on in T&amp;T right now, he said the retirement age should be over age 65 in T&amp;T.</p>
<p>Falk advocates a national pension system that is run by the State, but done in an efficient way.</p>
<p>“You want to make the economics work, you have to raise the retirement age right now. I don’t mean in 10 years.”</p>
<p>He then recommended a two-tier system, where white collar workers would retire at age 65 but blue collar workers would retire at age 60.</p>
<p>“For those of us who work with our brains and our minds, we have to work a lot longer. For the people who are labourers, who bust their backs, they should be able to retire younger, by at least five years. This would much more fair.”</p>
<p>He said there is a disparity in the life expectancy between blue collar workers are tend to be poorer and the knowledge workers who tend to be better off.</p>
</div></div></div>Sun, 18 Mar 2018 06:35:33 +0000alexk142256 at http://m.guardian.co.ttRapheal John-Lall‘We are invested in T&T’http://m.guardian.co.tt/business-guardian/2018-03-14/%E2%80%98we-are-invested-tt%E2%80%99
<div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even"><img typeof="foaf:Image" src="http://m.guardian.co.tt/sites/default/files/field/image/Patricio%20Torres.jpg" width="400" height="309" alt="" /></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"><p>Nestlé has had a long history with T&amp;T—over a century—beginning operations just at the start of World War I.</p>
<p>The company has seen both good times and bad times, economic booms and downturns but has continued to make its contribution to our economy.</p>
<p>Patricio Torres, market head, Anglo Dutch Caribbean, Nestlé, believes that the company’s strong footprint positions it to continue its work here even in the middle of tough economic conditions that the country faces.</p>
<p>Torres spoke to Business &amp; Money on Tuesday at Nestlé’s Valsayn office about the company’s operations and the plans for the future.</p>
<p>Torres assumed the position six months ago in T&amp;T. Before that, he was in his native Chile for five years. His main responsibility as market head is Nestlé business development in terms of their products and brands in the short-, medium- and long-term and also strengthening the cpmpany’s relationship with the community.</p>
<p>“We are a multinational but with a strong, local root. We have been in T&amp;T for 104 years. with roughly 600 employees at the moment,” he added.</p>
<p>Economic survival</p>
<p>Torres said it is not the first time that Nestlé has been faced with an economic downturn in T&amp;T or anywhere else in the world.</p>
<p>“It is an economic contraction. This is not the first country we have experienced this and Nestlé is in more than 180 countries so we are not here to do business in just two or three years.”</p>
<p>He said when a country is in the middle of a negative economic cycle, the country has to make decisions on how to improve the situation.</p>
<p>“Then we know the economy is going to recover. This is our expectation. Sometimes recessions and economic restraints help countries and companies to find new economic opportunities; new ways of working and capturing consumers’ attention.”</p>
<p>Aware that high economic growth is not as easy as the past, Torres shared:</p>
<p>“Before was easy because the country was growing and we were part of that dynamic so everything was growing.</p>
<p>“Today it is not, but you will see some businesses that are still growing. I always ask my team why?</p>
<p>“There are segments of Nestlé and other companies who are still growing. I believe that we are managing these businesses in a different way. We are reading the situation and understanding what consumers want.”</p>
<p>He said Nestlé and other companies operating in an economic contraction must adapt to the new realities.</p>
<p>“We are not going to compromise our values because we are in an economic crisis.</p>
<p>Nestlé has values and principles and we have to go through the different economic situations always aligned with our values. I have arrived in the middle of this economic situation and I have had experience in both types of economic situations. I have been in markets where we were growing a lot, I have been in markets where we were not. Normally, we can get growth in difficult economic situations.”</p>
<p>Local manufacturing</p>
<p>Torres described their portfolio in T&amp;T as strong.</p>
<p>“Our two main segments are milk and juices. We have juices such as Orchard which is one of the best known brands in the country and we have dairy milk. These two lines of products are produced here in our Trinidad factory.”</p>
<p>Most of what we produced is sold on the local market, but the company is also selling some of its products in Jamaica and other islands.</p>
<p>“It all depends on the commercial opportunities that exist in Jamaica or other islands. So we are trying to sell more of the products we make here in the other territories.”</p>
<p>He noted that milk and juices are produced in T&amp;T but some of the other Nestlé products are imported for the local market.</p>
<p>“We have coffee like Nescafe, Maggi, Milo and some cereals. We have a broad portfolio. We are importing those products from other markets.”</p>
<p>He said approximately 80 per cent of what Nestlé produce in T&amp;T are kept and sold on the local market.</p>
<p>“When it comes our milk products, we buy from local producers; almost 95 per cent of the milk the country produces. However, the volume of milk produced here is not enough to satisfy the local demand so we still have to also import.”</p>
<p>He pointed out that because of this Nestlé is continuing to work with local farmers on ways in which local milk production can be increased.</p>
<p>There are many factors involved in increasing milk production in T&amp;T.</p>
<p>“You must have farmers and land. At one time we brought animals from New Zealand to increase the volume of milk production. It is a long-term process and it is not just bringing in animals. Our programme is to help farmers improve their business in milk quality and also increase the volume they produce. Even if we bring more animals without a programme, we are not going anywhere.”</p>
<p>Nestlé is also going to bring experts from other countries to advise local farmers.</p>
<p>“They know how to build the dairy industry. That was my commitment to the Government.”</p>
<p>Competitive market</p>
<p>When asked how Nestlé’s products are doing locally, Torres answered by saying that the local market is very competitive.</p>
<p>“Competition is about having different players and they are good players. That is good for T&amp;T as there are international players who are entering the country. There are local companies importing products—all the products are diverse.”</p>
<p>He said Nestlé has used innovative methods to survive and do well.</p>
<p>“Nestlé in T&amp;T as well as other places have one key competitive edge: nutrition, health and wellness. Our products are superior in nutritional benefits for consumers.”</p>
<p>Pointing to small packs of a new juice product in his office. Torres said the apple flavoured drink has 55 per cent less sugar in it.</p>
<p>He used this as an example of the healthy products they are developing for the local market.</p>
<p>“We are the company which has been taking risks. There is less sugar but we are keeping the taste. We are committed with offering good tastes with the nutritional advantage. This is part of our DNA as a company. It is our competitive advantage.</p>
</div></div></div>Thu, 15 Mar 2018 03:05:09 +0000alexk142127 at http://m.guardian.co.ttRapheal John-LallSeaboard Marine steers the course for 16 yearshttp://m.guardian.co.tt/business-guardian/2018-03-11/seaboard-marine-steers-course-16-years
<div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even"><img typeof="foaf:Image" src="http://m.guardian.co.tt/sites/default/files/field/image/Edward%20Gonzalez.jpg" width="400" height="283" alt="" /></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"><p>Despite regional and local challenges, Seaboard Marine International remains committed to T&amp;T’s market says president Edward Gonzalez.</p>
<p>“For us, it is primarily because we made the decision that we are committed to the T&amp;T market and despite what is happing with the economy, when you look at cargo volumes, we decided it was a time to invest in this service and provide the fastest transit into T&amp;T.</p>
<p>“That is why we are the premier carrier from South Florida into T&amp;T.”</p>
<p>Gonzalez admitted there were serious challenges in the last six months like hurricanes, “the company has made it a point to be there and not turn its back on T&amp;T.” He added that the company is committed to this country for the long term.</p>
<p>Two weeks ago, Seaboard celebrated its 16th anniversary in T&amp;T with an event at Paprika Restaurant, St Clair.}</p>
<p>Speaks to guests at those celebrations, Stephen Bell, vice president, Seaboard Marine Caribbean International, said foreign exchange problem are not limited to T&amp;T.</p>
<p>“If we are going to talk real, let’s talk about the Caribbean. The Caribbean continues to suffer from foreign exchange challenges and it is how we as the private sector in partnership with the different governments tackle this issue.}</p>
<p>“Once we continue to put a product out there that is wanted and a service that is demanded, we will succeed.”</p>
<p>Bell added: “One of the things that has always been the mantra of Seaboard is to provide good service but at good rates. We invest in our people.</p>
<p>“Our president has always indicated that if we educate, train and operate, we will always have the best service. It is now paying off, we have the ultimate CEO and that has paid dividends for us in this market.”</p>
<p>Seaboard Marine is an ocean transportation company that provides direct, regular service between the North America, the Caribbean Basin, Central and South America. With a fleet of more than thirty vessels serving over 35 ports, the company is a trade leader in the Western Hemisphere.</p>
<p>A market leader</p>
<p>CEO Trevor Chan Pak said: “There is always that niche to carve out for yourself, but it takes creativity and innovation for that to happen. You cannot do what you have been doing and expect change. So we created a new product and we got the result of what we did</p>
<p>“When you are into private sector business nothing is guaranteed year to year. It all depends on your staff, human resource and creativity because your competition is coming at you hard. It is not that you have this path that is only for you. Everybody is trying to get at you, so we are going to dig deep this year and see what you can do for next year. Standing still is really going backwards.”</p>
<p>Chan Pak said over its 16 years, the company has maintained a dedicated, hardworking team.</p>
<p>He also compared Seaboard’s speed and efficient service to Jamaican Olympic medalist, Usain Bolt.</p>
<p>“Seaboard is the Rolls Royce of the waters. It is no secret that we arrive here first and anything faster than Seaboard has to be an aircraft. We bring the customers first to the market.”</p>
<p>He attributed their success to Gonzalez changing their rotation which resulted in an extremely fast transit into T&amp;T.</p>
<p>“I am happy to report that last year was our best year ever during hard times. It is stunning, probably over ten points over the second place person.”</p>
</div></div></div>Sun, 11 Mar 2018 05:59:04 +0000alexk141982 at http://m.guardian.co.ttRapheal John-LallA tourism catalysthttp://m.guardian.co.tt/business/2018-03-10/tourism-catalyst
<div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even"><img typeof="foaf:Image" src="http://m.guardian.co.tt/sites/default/files/field/image/launch.jpg" width="400" height="211" alt="" /></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"><p>Trade and Industry Minister Paul Gopee-Scoon says the newly-launched Live Music District has the potential to concretise the business aspect of the local music sector.</p>
<p>“This would empower the independent artistes and build that spirit of entrepreneurship. The district will serve as a cultural and entertainment hub offering access to performance spaces throughout the year, as we move through the different project phases for diverse and talented local musicians from all genres.</p>
<p>“It is expected that revenue will be generated from economic activity within Port-of-Spain and environs, including ticket sales where applicable, transportation, the sale of food and beverages, equipment and rental and accommodation,” Gopee-Scoon said at the launch of T&amp;T’s First Live Music District at the Residence Restaurant, One Woodbrook Place, St James, on Thursday night.</p>
<p>The plans for the first Live Music District were unveiled in the 2018 Budget Speech.</p>
<p>According to the T&amp;T Creative Industries Company Ltd, live music is a fundamental pillar of the global music industry and music cities have become a global trend and are seen as economic drivers and tourism development catalysts. Gopee-Scoon added that the Live Music District will offer local music artistes the opportunity to develop their competencies.</p>
<p>“The artistes and entrepreneurs have a platform from which to hone their skills through the live music circuit. This initiative has its genesis in the national policy framework of 2015, which was further aligned strategically in the National Development Strategy 2016, Vision 2030. The creative sector is a key component in the diversification thrust of the Government.”</p>
<p>She referred to a Caricom report in 2006 from a team headed by Dr. Keith Nurse, which concluded that investing in the cultural and creative industries provide worthwhile returns because it generates high value forms of employment and exports.</p>
<p>She also referred to the Inter American Development Bank’s (IDB) 2013 publication, the Orange Economy, which estimated that if the creative sector were a country it would represent the fourth largest employer worldwide and rank as the ninth largest exporter of goods and services globally.</p>
<p>“The UK reported an 11 per cent growth in the creative sector between 2015 and 2016, twice the rate growth of the rest of the economy. Revenue from the global industry is estimated at US$15.7 billion and of course T&amp;T must have an increasing stake in that, particularly as music is an integral component of the domestic creative sector,” she said.</p>
</div></div></div>Sat, 10 Mar 2018 04:26:37 +0000alexk141937 at http://m.guardian.co.ttRapheal John-LallScotiabank profits down by $23mhttp://m.guardian.co.tt/business/2018-03-06/scotiabank-profits-down-23m
<div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even"><img typeof="foaf:Image" src="http://m.guardian.co.tt/sites/default/files/default_images/GuardianMedia.jpg" alt="" /></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"><p></p>
<p>Scotiabank T&amp;T’s profit after tax of $148 million for the quarter ended January 31, is a decrease of $23 million or 13 per cent over the same period last year.</p>
<p>This reduction in profitability was driven by higher levels of loan loss provisioning combined with increased corporation tax rates levied on commercial banks at 35 per cent.</p>
<p>Managing director Stephen Bagnarol said: “The bank’s performance for the first quarter of fiscal 2018 is indicative of the challenging economic environment in which we operate. In light of these conditions, we continue to adopt robust expense management initiatives and credit risk management policies. </p>
<p>“As a result, our core performance continues to be driven by solid growth in our retail business combined with a containment of expenses and conservative loan loss provisioning.”</p>
<p>Concurrent with the decline in profitability, Earnings Per Share (EPS) decreased to 83.3 cents, return on equity to 15.05 per cent and return on assets to 2.44 per cent, compared to January 31, 2017.</p>
<p>Brendan King, chairman of Scotiabank T&amp;T, told shareholders at the bank’s annual general meeting at the Hyatt Regency in Port-of-Spain yesterday that despite difficult circumstances, the bank is optimistic about the country’s future.</p>
<p>“Turning to Trinidad and Tobago, the economic climate is starting to turn more promising with positive Gross Domestic Product (GDP) growth of 1.9 per cent projected for 2018, an improvement from negative GDP growth of 3.2 per cent in 2017 and 0.6 per cent in 2016. Crude oil prices are on the rise since September last year and currently are above the US$52 barrel mark upon which the Trinidad and Tobago budget is based,” he said.</p>
<p>While, the latest quarter reflected a decline over the same period last year, the financial year ended October 31 showed positive results for the bank which achieved net income of $658 million—an increase of $32 million or five per cent over the same period in 2016.</p>
<p>“This was achieved in spite of of the increased tax rate now in place on commercial banks of 35 per cent, up from 25 per cent two years ago. I note that global trends are to a reduction in corporate tax rates in order to support private sector investment and growth and I suggest that Trinidad and Tobago will need to further consider these issues in planning tax policies,” King said.</p>
<p>In response to comments from shareholders Bagnarol spoke about another bank’s recent branch closures: “I don’t want to comment on a competitor’s strategy but I would say that we constantly review our resources and footprint. The idea of going digital is not about taking people out of the branches it is about changing the conversation and having a dialogue. </p>
<p>“We are trying to move along with changing consumer habits. Our customers are the same ones using Uber, that are shopping on Amazon, and they are constantly demanding more from us on a digital channel. Let us have the branches there to have dialogue.”</p>
</div></div></div>Wed, 07 Mar 2018 01:59:31 +0000Neo141801 at http://m.guardian.co.ttRaphael John-LallDr Atul Wad:Plenty potential in agriculturehttp://m.guardian.co.tt/business-guardian/2018-03-04/dr-atul-wadplenty-potential-agriculture
<div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even"><img typeof="foaf:Image" src="http://m.guardian.co.tt/sites/default/files/field/image/Dr%20Atul%20Wad.jpg" width="400" height="478" alt="" /></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"><p>T&amp;T has many companies and businesses with a strong information technology base, as well as many innovative entrepreneurs who are looking for opportunities.</p>
<p>However, as a small developing country, its companies and businesses need technical help in marketing, research, technology and financing, says Dr Atul Wad, president, Tambourine Innovation Ventures, a company based in the United States.</p>
<p>Wad will be a speaker at the Inter-American Development Bank’s (IDB) First Pillar event next Thursday.</p>
<p>IDB launched its Unfollow: Same Never Made a Difference campaign in November 2017, to support dissemination of its 2016-2020 Country Strategy Trinidad &amp; Tobago. The campaign seeks to reach the wider public in a meaningful and activating way, highlighting the need to be different and disruptive, while promoting change, collaboration, idea generation and innovation from all sectors of society.</p>
<p>Wad has more than 30 years of experience in sustainability, entrepreneurship, technology management, innovation, and business strategy. His career has spanned private sector, not-for-profits, academia, multilateral development banks (MDBs), international organizations such as UN, and the venture capital industry.</p>
<p><strong>Economic diversification</strong></p>
<p>Despite the present challenges, Wad is optimistic T&amp;T can diversify its economy.</p>
<p>“Trinidad and Tobago has a very strong entrepreneurial economy that needs to be supported,” he said.</p>
<p>“Trinidad and Tobago has a fairly strong base of technical expertise. What is needed is active Government support and of course money is needed. The banking institutions in the Caribbean are not prone to taking risks.”</p>
<p>According to Wad, there is a legacy economic structure in T&amp;T that has been dominated by the energy sector to the exclusion of other sectors.</p>
<p>“Now there is an effort by the Government to re-balance the economy away from its over dependence on oil, which I think is a very good thing,” he said.</p>
<p>While he see potential in some areas earmarked for diversification, such as agriculture and health, Wad is less optimistic about other areas such as the maritime sector and aviation.</p>
<p>“I tried to make sense as to why aviation technology is important as a diversification strategy for Trinidad and Tobago. Does Trinidad and Tobago want to become the NASA of the Caribbean? Does Trinidad and Tobago want to become like airplane manufacturer Boeing? What’s the motivation? I couldn’t get a handle on it to be honest,” he said.</p>
<p>Wad’s company is studying the crops of T&amp;T searching for potential for value added in the agriculture sector.</p>
<p>“When I say value added, I do not mean taking papaya (paw paw) and selling the juice. You could take local Scorpion Pepper and extract its contents which can be used for different applications in the food industry, for pain killers. If done properly, it can be used as an important revenue stream,” he explained.</p>
<p>He said the development of the agriculture sector can produce many jobs and it has export potential.</p>
<p>The health sector is another good area to diversify the economy into and there are opportunities in education sector and aquaculture, he said.</p>
<p>Wad has been involved in the Caribbean for two decades mainly in the areas of science and technology.</p>
<p>“We have worked in Trinidad and Tobago, Jamaica, St Lucia. Belize and now Guyana. We know the region well. We work in the public sector in regional organisations such as Caricom, the University of the West Indies and Cariri in T&amp;T,” he said.</p>
<p>His company is also involved in projects supported by the IDB related to innovation, entrepreneurship and technological change.</p>
<p><strong>Cariri</strong></p>
<p>Wad’s relationship with Cariri goes back many years and he spoke about a project that he is working on with them in technology intelligence.</p>
<p>He asked: “How do you go about finding out where are the sources of technology that can provide solutions to challenges being faced in Trinidad and Tobago?”</p>
<p>Smaller companies in T&amp;T and around the world just don’t have the expertise to find and develop the latest technology, he explained</p>
<p>“They don’t know where to look, they don’t know how to talk to the people, they don’t know how to relate. This is important in getting the private sector in Trinidad and Tobago more innovative.”</p>
<p>Cariri’s employees are currently being trained and the next stage is implementing a unit there that provides technology for the benefit of local companies. Wad is also working with 20 local companies identified under another IDB programme.</p>
<p>“Our responsibility is to identify innovative companies in Trinidad and Tobago and help them to move forward with whatever assistance they need, such as marketing, technology, financing and so on. There are companies working on blockchain and that’s impressive so there are smart entrepreneurs in T&amp;T,” he said.</p>
</div></div></div>Sun, 04 Mar 2018 06:00:28 +0000alexk141718 at http://m.guardian.co.ttRapheal John-LallRamnarine: Uncertainty over restructuringhttp://m.guardian.co.tt/business/2018-03-03/ramnarine-uncertainty-over-restructuring
<div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even"><img typeof="foaf:Image" src="http://m.guardian.co.tt/sites/default/files/default_images/GuardianMedia.jpg" alt="" /></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"><p>Although talks are ongoing on the future of state-owned Petrotrin, former Energy Minister Kevin Ramnarine maintains that there is still a great deal of uncertainty about the energy company.</p>
<p>“For the last year, we have been hearing about the restructuring of the company. It started with the Selwyn Lashley committee in 2017 which recommended the company be divided into three divisions: Land Production, Trinmar and Refining and Marketing (R&amp;M).</p>
<p>“Last week at the Joint Select Committee we heard that the Board had opted for two divisions namely Upstream and R&amp;M. Yesterday we heard its now to be restructured into four divisions: Land, Trinmar, R&amp;M and Health Operations. We have gone from three to two to four. So there is a lot of uncertainty and ambivalence as to what is happening at Petrotrin,” he said.</p>
<p>Ramnarine said the aim of restructuring should be to reduce the cost of lifting a barrel of crude oil, reduce the cost of refining a barrel of crude oil and increasing oil production.</p>
<p>“If this is not achieved we are wasting a lot of time and money on expensive consultants. It is also being made out that the issue with high cost is because of the management of the company. This is not correct and is a deflection from the real source of the bloated cost structure of the company,” he said.</p>
<p>“Note too that this approach of separating the company into divisions was tried before in the late 1990’s and it was later abandoned because it was deemed to have failed as it created a lot of duplication. So we wait to see how effective this new approach will be.”</p>
<p>On the future role of the Oilfield Workers Trade Union’s (OWTU), the former minister said: “It is clear that they have a major say in this restructuring since they have gotten their way regarding the divisions and having Trinmar separated, so the jury is out as to whether this will navigate the company to efficiency, productivity and profitability. Ultimately, national interest must triumph.”</p>
<p>Dr Roger Hosein, senior lecturer at UWI, said the priority is for Petrotrin to reduce its wage bill.</p>
<p>“The company will need to continue in this direction to trim its manpower operating costs in line with best practice. As it stands there is little operating capital left after paying its wage bill and this reduces the likelihood that the company can address its aging infrastructure, with all type of attendant consequences.”</p>
</div></div></div>Sat, 03 Mar 2018 04:31:00 +0000alexk141662 at http://m.guardian.co.ttRapheal John-LallBuilding trade ties with T&Thttp://m.guardian.co.tt/business-guardian/2018-02-25/building-trade-ties-tt
<div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even"><img typeof="foaf:Image" src="http://m.guardian.co.tt/sites/default/files/field/image/pos_1.jpg" width="400" height="235" alt="" /></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"><p>T&amp;T’s economy has been in the doldrums over the last few years because of the drop in oil and gas prices.</p>
<p>While successive Governments have spoken about the need to diversify the economy since 1962, unfortunately very little has been done to achieve this seemingly elusive goal.</p>
<p>This lack of diversification raises the question about how competitive T&amp;T’s economy truly is, and what potential exists for the country to move beyond the monetisation of oil and gas.</p>
<p>In the contemporary globalised world, large transnational companies can easily move capital to Africa or China or Latin America or to anywhere other than T&amp;T.</p>
<p>What makes T&amp;T attractive as an investment destination?</p>
<p>The Sunday Business Guardian spoke to a number of foreign embassies in T&amp;T about their business and trade links with the country and how they view the country as an investment destination and a place to do business.</p>
<p>GERMANY</p>
<p>Andreas Haack, Deputy Head of German Embassy told Sunday Business that T&amp;T remains an important place to do business for Germany.</p>
<p>“At the Embassy we see ourselves as playing an important role by providing information. We are here to help business people in T&amp;T who want to know about doing business with Germany. We have no German Chamber of Commerce in T&amp;T, but it is a task taken over by Euro-Cham.”</p>
<p>He described T&amp;T as the “hub” of the Eastern Caribbean in the area of travel and business.</p>
<p>“T&amp;T has trade links like ports so in that sense T&amp;T serves as a hub for all of the Eastern Caribbean all the way to Jamaica and Puerto Rico including Guyana and Suriname. That’s why we have an Embassy here as it is an important place for the region. T&amp;T is well linked to Europe and we have the Economic Partnership Agreement (EPA) which is very important.”</p>
<p>He said recent years have been “challenging” for T&amp;T because of the decline in oil and gas which accounts for most of the revenue the country receives.</p>
<p>“We are a bit concerned because Germany is a big investor in T&amp;T as it is one of our largest direct investment destinations in Latin America and the Caribbean, which is around US $4 billion. The amount puts it on a level with Mexico. This investment is mainly in the petrochemical sector in Point Lisas.”</p>
<p>He also expressed “concerns” about the gas shortages.</p>
<p>“This is a general problem because there is a shortage which affects various sectors of T&amp;T’s economy. Unfortunately it led to a shutdown of the ammonium plant in Point Lisas. We are hoping that these issues can be overcome and all the plants in Point Lisas will be operational.”</p>
<p>Beyond oil and gas, he supports the initiative of T&amp;T’s Government to diversify the economy.</p>
<p>“That is key for the economic development of T&amp;T. Also in the larger context of the reduced role of hydrocarbons in the future, all that is linked to climate change which is affecting the Caribbean. Look at the hurricanes last year in Dominica. Diversification is key.”</p>
<p>Haack said there is a relationship in the tourism sector, as before the Carnival there was a cruise ship with mainly German passengers coming to Port-of-Spain.</p>
<p>There is also a flight twice a week from Frankfurt to Tobago, with Haack stating that this shows that Tobago is well connected to Germany’s tourism market.</p>
<p>He also said there is a potential for agricultural products.</p>
<p>“Angostura and its products is one example. There is also potential in cocoa, and this has a huge potential in Germany. The cocoa consumption in the world is increasing.”</p>
<p>GUATEMALA</p>
<p>Jorge Contreras, First Secretary, Guatemala Embassy told Sunday Business that the Embassy, representing the Government of Guatemala is doing a lot of work to improve trade and investment between the two countries.</p>
<p>He said the Partial Scope Trade Agreement of Trinidad &amp; Tobago - Guatemala (APP) was signed by both parties on February 6, 2015 and aims to improve economic relations between both countries through the expansion of trade in goods and services.</p>
<p>“In terms of merchandise trade, product coverage is limited but varied. The APP was ratified by the Guatemalan Congress in February 2017 and still needs to be ratified by the Parliament of T&amp;T to be in force.”</p>
<p>He said when the agreement enters into force, manufacturers in T&amp;T will benefit from preferential rates of 135 products.</p>
<p>“Exporters from T&amp;T can sell agro-processed products, for example: curry, chocolate, jams and guava jellies, peanut butter—agricultural products, hydraulic fluids, toilet paper or facial, building bricks, aluminum tiles and doors to a market of approximately 17 million people.”</p>
<p>He said on the import side, T&amp;T granted Guatemala preferential rates for 144 products such as beef, cheese, flowers and vegetables, processed foods and manufactured goods like plastic sheets, garments and costume jewelry.</p>
<p>According to statistics Contreras provided, in 2017, exports from Guatemala to T&amp;T were US$21,950.50 and imports amounted to US$6,342.90.</p>
<p>The trade balance was in favor to Guatemala for the amount of US$ 15,607.50.</p>
<p>UK</p>
<p>According to a statement from the British High Commission, the United Kingdom and T&amp;T have strong trade links, based on shared history, language, legal, political and education systems.</p>
<p>Trade and investment links are particularly strong in the energy sector.</p>
<p>UK energy companies are major employers and investors in T&amp;T, and lease the largest quantity of energy acreage offshore.</p>
<p>Referring to the T&amp;T, as the “most industrialised” country in the region, the High Commission noted that T&amp;T also provides enhanced market access to Latin America via trade agreements such as CARICOM Colombia and Partial Scope Agreement T&amp;T-Panama.</p>
<p>According to the High Commission, T&amp;T offers competitive investment incentives in the non-energy sector.</p>
<p>“For example, it takes relatively little time to set up a business when compared to its regional counterparts. For a number of years, the UK has been supporting development of the cocoa sector. Local cocoa is exceptionally high quality, and the industry has strong export potential. A recent partnership between Trinidad and Tobago Fine Cocoa Company and Harrods of London led to the production of high-quality Trinitario chocolates in T&amp;T for export to the United Kingdom for final packaging and marketing in Harrods.”</p>
<p>The latest trade statistics for 2016 show that the United Kingdom exports to T&amp;T were worth £259 million (£131 million in goods; £128 million in services).</p>
<p>United Kingdom imports from T&amp;T were valued at £112 million (£67 million in goods; £45 million services).</p>
<p>CUBA</p>
<p>A statement from the Cuban Embassy said at the latest Havana International Fair (FIHAV 2017), ExporTT, signed two important agreements on behalf of T&amp;T, with Cuba, one of them with the Centre of Cuban Trade and Investment Promotion, ProCUBA, to promote trade and foreign investment.</p>
<p>The other was with the Cuban Chamber of Commerce, where a 2017-2018 Plan of Action was approved, aimed at the exchange of information and cooperation on economic objectives, where new sectors of common interest for both countries are incorporated.</p>
<p>The aforementioned would facilitate trade between Cuba and T&amp;T in sectors such as energy, product manufacturing, biotechnology, among others.</p>
<p>In January, regional carrier Caribbean Airlines started flying to Havana, with a frequency of two flights a week which would facilitate the links between the countries of CARICOM and Cuba, and will offer major opportunities for tourism and trade.</p>
<p>Other than oil and gas, the Cuban Embassy said that T&amp;T’s economy is “dynamic” and has the potential to supply Cuba with many products.</p>
<p>Cuba imports manufactured goods, in particular food products and hygiene items from T&amp;T.</p>
<p>At the end of 2015, the commercial exchange between T&amp;T and Cuba reached approximately US $50 million and for 2016 the amount was doubled, reaching $109 million.</p>
<p>COLOMBIA</p>
<p>Alfonso Múnera, Colombian Ambassador told Sunday Business that the business relationship between the two countries has increased over the years.</p>
<p>“My feeling is that we are doing much better in trade. I see interest from both countries and soon we will see a big improvement in trade,” he said.</p>
<p>This week he said there was a workshop in the head office of the T&amp;T Manufacturers’ Association (TTMA) in partnership with ExporTT and the Colombian Embassy, and it was about doing business in Colombia.</p>
<p>“More than 30 business people went to the workshop. It was really a positive surprise as they were expecting about ten people. They want to know more about business in Colombia.”</p>
<p>ExporTT has announced that they are preparing a trade mission to Colombia and it will take place in September.</p>
<p>He said T&amp;T’s increased business ties is indicative of its willingness to be closer to Latin America.</p>
<p>Beyond energy he gave some examples of products T&amp;T can and has already started to send to Colombia.</p>
<p>“Spices like Masala and curry are very attractive in the Colombian market. There is also the beverage sector and T&amp;T rum which has a lot of potential. In the area of services, there is also opportunity to send to Colombia educational English material. Thousands of Colombians go to USA and Canada to learn English but T&amp;T is so close,” he concluded.</p>
<p>CHILE</p>
<p>Fernando Schmidt, Chilean Ambassador, was much more dampened in his view on doing business with T&amp;T.</p>
<p>When asked about doing business, he said: “It is hard to break with a culture of reciprocal acknowledgement.”</p>
<p>However, he noted that T&amp;T has a lot of potential once it does the right things to move beyond just being a primary producer of oil and gas.</p>
<p>He pointed out that T&amp;T can be a hub for Latin American and Chilean goods as there is an excellent airport but very few air services agreements.</p>
<p>Schmidt added that he believes T&amp;T’s tourism has never been promoted in the way it should be.</p>
<p>“T&amp;T can be a good market for Chileans tourists as they are used to travel to the Dominican Republic, Cuba, Florida, Mayan Riviera and many other destinations in the Caribbean Basin” he said.</p>
<p>He spoke about cocoa as a quality product, and noted that Chileans import Trinitario cocoa, but through Belgium.</p>
<p>He concluded by saying that Chile is an open economy and all T&amp;T’s industrial products are welcomed provided they are competitive and comply with international standards.</p>
</div></div></div>Sun, 25 Feb 2018 05:58:06 +0000alexk141454 at http://m.guardian.co.ttRapheal John-LallOnline shopping continues to growhttp://m.guardian.co.tt/business-guardian/2018-02-22/online-shopping-continues-grow
<div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even"><img typeof="foaf:Image" src="http://m.guardian.co.tt/sites/default/files/field/image/online%20shopping.jpg" width="400" height="231" alt="" /></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"><p>In his mid-year budget review in 2016, Finance Minister Colm Imbert introduced a seven per cent tax on online shopping.</p>
<p>Imbert said the reason behind the introduction of the tax was to try to find new ways of raising revenue.</p>
<p>According to the Finance Minister, the imposition of this tax was expected to generate an annual revenue of $300 million.</p>
<p>To date, there has been no clear expression as to whether this figure has been accomplished.</p>
<p>In a televised interview at the time, Imbert also said that local banks had been earning between 12 to 13 per cent on all foreign exchange transactions associated with online shopping.</p>
<p>He added that the amount of foreign exchange that is consumed in T&amp;T annually was US$7 billion.</p>
<p>Last week, Minister Imbert told the House of Representatives that credit card purchases originating in T&amp;T consumed US$1.2 billion in 2017.</p>
<p>It is clear that the build up of online shopping has affected many players in the economy and has had a marked impact on the use of foreign exchange.</p>
<p>The question that remains, therefore, is: how successful has the Government’s attempt to curb this activity as well as generate revenue been?</p>
<p>Further, how have shopping centres and couriers in the country been affected by the escalation of customers engaging in online shopping and the corresponding online tax?</p>
<p>Business and Money spoke to some of the key stakeholders in the industry to find out.</p>
<p>Couriers share mixed views</p>
<p>Herbert Alleyne, general manager, RedXpress, said that they have managed to do well despite the seven per cent tax.</p>
<p>“Fortunately for us because we are a relatively small outfit, we are on a growth path, so it has not hit us hard. When you’re small, growth is much healthier. But speaking about other people in the market, the seven per cent tax has affected them. Also, the economy has not been great last year. I know some of my counterparts have been complaining.”</p>
<p>RedXpress is a courier company which offers sky box services out of Miami.</p>
<p>Their operational office is based in Piarco and their pick up point is in Woodbrook.</p>
<p>He said they have seen an increase in business in recent times.</p>
<p>“A number of our customers are new customers that have signed up with us. Our service and rates put us on the competitive side of things.”</p>
<p>He gave his opinion as to why people are still shopping online despite the online tax.</p>
<p>“Internet shopping and our type of business is here to stay. It is just so convenient. The options are there, the prices are better. With courier service, everything is on point. It is just a matter of a few days to order from Miami to warehouse and then to get to T&amp;T and deliver to the customer.”</p>
<p>Apart from individuals, Alleyne said it is also a good option for corporate clients.</p>
<p>“If a customer brings in by ocean or air freight, then you need a broker to clear, but a lot of them for smaller items they are utilising courier services now. That is our model as we handle everything.”</p>
<p>He said some of their challenges include the lack of US dollars to do business.</p>
<p>He called 2017 a “bumper” year.</p>
<p>“We had record months all of last year. We had a bumper Christmas. In 2017 we did almost 50 per cent more than 2016. Since we set up our own warehouse in Miami, we are controlling our own destiny.”</p>
<p>He concluded by speaking about malls.</p>
<p>“Sometimes when you go to the malls, you can see that they are feeling it. Retail stores are being affected by internet shopping,” he said.</p>
<p>Paul Pantin, director, eZone told the Business and Money that despite the economic conditions they have “managed to hold their own” in terms of market share for people shopping online.</p>
<p>“In 2017, we have managed to stay ahead of the curve.”</p>
<p>He said the use of US dollars is not just people who are spending online.</p>
<p>He also said that they are not just a company that offers services of internet shopping so the seven per cent tax would not affect them “across the board.”</p>
<p>“We offer a complete logistics service. We do clearance and delivery, pick ups in Miami in the UK, so a number of businesses use us and that would not attract that seven per cent tax.”</p>
<p>Pantin said even if there is a drop in business, it is difficult to say that companies like their own have been affected solely by the seven per cent tax or if there are other factors involved.</p>
<p>“This is because of the recessionary pressures that the whole country is under. You really cannot point to one particular tax to say that this has affected negatively or not. I would say that it has caused any concern among the public especially those that buy online.”</p>
<p>He added, however, that people are still purchasing online as it is cheaper than buying from local retailers.</p>
<p>“Everything so far that the Minister of Finance has blamed on us or has introduced into the economy to try to stem the flow of US dollars has not really worked. I would like to see a different thinking, rather than trying to strangle the economy, they need to meet the business community and have a comprehensive plan.”</p>
<p>Lincoln Maharaj, CEO, Websource, said businesses like his have been affected negatively in recent times but it is not only because of the implementation of the tax but also the general state of the economy.</p>
<p>“The cost of living, in general, has gone up. People have adjusted their spending habits accordingly. There are several factors that account for the drop in business between last year and this year.”</p>
<p>He said the recent Christmas and Carnival period was not good compared to years gone by.</p>
<p>“So definitely a decline across the board. It just has to be the state of the economy. People are controlling their spending because they don’t have disposable income.”</p>
<p><strong>HCL CEO: Shopping mall business must evolve</strong></p>
<p>Richard Le Blanc, CEO, HCL Ltd, believes that shopping centres have been affected by the growth of online shopping.</p>
<p>“Anything that takes sales away from shopping centres, any new mode of shopping would impact on shopping centres. I cannot say that online shopping is not affecting malls as this is a new way of shopping that people are gravitating to. Just look at Amazon and how well they are doing, look at their share price.”</p>
<p>Apart from online shopping, he pointed out that the recession that has gripped the country is also affecting shopping centres.</p>
<p>Yet, he said malls continue to be built.</p>
<p>“We may have become an overbuilt society. There is C3 Mall in San Fernando, there are the two new plazas in Trincity, among others.”</p>
<p>When asked if it is a contradiction as more people are shopping online and yet there were more malls being built, Le Blanc attributed this to market forces.</p>
<p>“I won’t say there is a contradiction. It is new malls being built by developers to do what they have to do to survive.”</p>
<p>To survive, he said, that developers must see that the country and world is evolving and business people must become innovative to survive.</p>
<p>“Malls must re-invent themselves. Shopping centres must not be just to buy and sell but they must become places to socialise and for entertainment. Derek Chin of MovieTowne has been good at doing that. We did it in Trincity and at One Woodbrook Place.”</p>
<p>He said it is natural for people wanting to socialise and meet other people and there are limits to what can be done online.</p>
<p>“Can you meet your future wife shopping online? No, you have to go out and meet her. That is why there will always be a need for malls and places to meet other people. I remain optimistic about the future of malls,” he concluded.</p>
<p><strong>BATT head says online shopping driven by prices, not credit card access</strong></p>
<p>Questioned about whether ease of access to credit cards and debit cards that made online shopping possible had caused the activity to accelerate, Nigel Baptiste, president of the Bankers’ Association, said in a statement to Business and Money:</p>
<p>“The proliferation of credit cards has not caused more people to shop online. The differential in prices and the wider variety of items available online has resulted in individuals exploring more online channels.</p>
<p>“It should be remembered that T&amp;T is an open economy and most of the items consumed originate overseas. As such, foreign exchange is being utilised when consumers purchase most items locally using cash or credit cards.”</p>
<p><strong>Online shopper: Money saved shopping online</strong></p>
<p>Marissal, who shops online, spoke to the Business and Money about why she started shopping online and why she will continue.</p>
<p>“I started to shop online before that tax was levied. Even when the tax came about I didn’t stop as the prices here in T&amp;T are atrocious. If you’ve been to malls on the East West Corridor, the mark up on some of these items is exorbitant. To me, I could save that extra as it is not as much as the seven per cent.”</p>
<p>She said she prefers to incur the additional tax than to buy locally because in many instances it still works out cheaper.</p>
<p>“I shop online about two to three times a month. So I spend less time frequenting the retails stores. I don’t ever cross the equivalent of US $200 monthly in purchases. I get about ten items from that. I purchase from tops to dresses to blankets.”</p>
<p>She concluded by saying if the taxes on online shopping are raised again, she would still shop online.</p>
<p>“If that happens and prices in malls in T&amp;T are still high, I would make a trip or two out of the country.”</p>
</div></div></div>Thu, 22 Feb 2018 04:56:30 +0000alexk141342 at http://m.guardian.co.ttRapheal John-Lall